AUSTRIA DOES ANGELA MERKEL’S DIRTY WORK: Fewer migrants will travel on to Germany, and Greece will be forced to accept EU help. http://politi.co/1SzMZtV

Sebastien Kurz, the 29-year-old Austrian immigration minister, faced a jam-packed audience Thursday in Davos and an equally hungry pack of reporters after his closed session on the topic on integrating refugees. Kurz spoke in positive terms about refugees and Austria was “forced to take a very tough decision” because the number were “far too high” in 2015 and “the atmosphere is extremely bad” right now. Austria has the second highest per capita intake of refugees in the EU, after Sweden. He justified the government’s action by comparing them to those of Sweden, and refused to say what he thought Germany should do in reaction, saying that Angela Merkel does not need advisers from Austria. Kurz stressed the need to “Change the atmosphere and make it possible for people to believe we can integrate immigrants.”

GERMANY PONDERS MIDDLE EAST MARSHALL PLAN: Wolfgang Schäuble, speaking at the World Economic Forum in Davos, outlined an emerging German strategy that involves using EU and German economic ties and aid as an incentive for transit and source countries beyond Europe to cooperate. “What’s most important to us now is to invest billions in the regions from which the refugees come, to reduce the pressure on external frontiers of Europe, to make sure Europe does not become a fortress,” he said during a panel discussion. “it is a disgrace for EU if we were become a fortress.” http://politi.co/1P8vEWD

MERKEL ISOLATED: German Chancellor Angela Merkel is completely isolated in Europe, the public broadcaster Deutschlandfunk believes: “The German way long ago took a separate path from the rest. And now the chancellor is holding fast to her mistake. Neither the German-Turkish government consulations on Friday nor the pledging conference and the EU summit in February will alter the fact that the truth lies on the border: 2,235, 2,596, 2,928: these figures correspond to the number of refugees on the German border in the past few days.”

GERMANY — A FAUSTIAN MOMENT FOR THE LEFT: Janosch Delcker reports on how Die Linke leader Sahra Wagenknecht is pushing to “Corbyn-ize” Social Democrats. http://politi.co/1PIgmUI

GEORGIEVA — MANY ROUTES TO THE UN TOP JOB: The long and winding road that European Commission Vice President Kristalina Georgieva is taking towards candidacy for the U.N. secretary-general position is taking a new twist. Smart observers have noticed a loophole in the new nominating process for the post, due to be filled by the end of the year. Georgieva’s rival for the post, Irina Bokova, is a Bulgarian compatriot, and a previous Bulgarian government promised her the nomination. However, now Georgieva’s party is in office the question arises: How about nominating two people? And if that doesn’t work — there’s always the chance of a third country nominating Georgieva. The commissioner has certainly been racking up the air miles in a way that would maximize the number of countries willing to consider that option.

ITALY — SANNINO APPOINTED TO MADRID; GOZI UNDER THREAT: Italian newspapers suggest the country’s Europe minister may be sacked, and that the current EU permanent representative is bound for Spain. http://bit.ly/1nBYvs1

**A message from EPP Group: This week the Parliament debated the rule of law in Poland and the Dutch Presidency. See how the EPP Group Vice-Chair Esteban Gonzalez Pons reminded that the worst form of authoritarianism has always come from inside the country. Chairman Manfred Weber insisted action is needed now to implement what has already been decided on migration.**

TRADE — MALMSTRÖM’S TRADE VISION: The commissioner’s opinion piece in POLITICO on how to use the WTO to spur growth and support development: http://politi.co/1Qo5ik9

DIESELGATE — HOW THE NEW PARLIAMENT INQUIRY WILL TEST CAR INDUSTRY: “European car manufacturers already knew they were in trouble,” report Quentin Ariès and James Panichi. “Now the European Parliament could usher them into a new world of pain.” http://politi.co/1ncP81t

CYPRUS HOPE: Nicos Anastasiades, president of Cyprus and Greek Cypriot Leader, and Mustafa Akıncı, the Turkish-Cypriot Leader, completed another first yesterday, with a joint appearance on stage at the World Economic Forum in Davos indicating a settlement ending the division of the island could be reached in 2016. “There is a climate of hope prevailing on the island and we are taking into account the sensitivities and concerns of our communities.” said Anastasiades, who added reunification would heal “an open wound at the heart of Europe.” Akıncı confirmed that the two leaders are “working tirelessly” to achieve a mutually acceptable solution. “We are aware this is the last trial for uniting our island,” he said.

BREXIT — WHAT’S NEXT? David Cameron, after a meeting with Queen Rania of Jordan this morning in Davos, will embark on a tour of six EU countries next week to continue to sell his reform package. Poland is seen by British officials as the key sticking point, and there is nervousness about how much Germany will risk in order to keep Britain inside the union.

CAMERON WANTS THE BEST OF BOTH WORLDS: The British PM delivered his Davos speech walkabout style, with no notes, outlining what needs to happen to avoid a Brexit from the EU. The key takeaways:

— There need to be results in all four areas of his demands or he won’t sign a deal.

— Diplomats can expect a very long spring if they don’t come up with the goods: “If there isn’t a good deal, I’m not in a hurry. I can hold my referendum anytime up until the end of 2017.”

— He admitted the U.K. could not get as good a suite of trade deals outside the EU, but insisted the U.K. could go it alone if needed: “We are the fifth biggest economy in the world.”

— He fleshed out his idea of second-tier membership of the EU as the “best of both worlds” in which the U.K. is “In the single market, but not in the single currency. Benefiting from free movement around the continent, but maintaining our own borders.”

— A eurozone level playing field is as important as migration curbs: “I want the eurozone to succeed … [but] it is completely unacceptable to use the money of a non-eurozone state to fix a eurozone problem.” http://politi.co/1ZQyuq0

POLAND’S NEW EU INTEREST: JOURNALISTS: The Polish government wants the European Parliament to hand over a list of all the journalists accredited to it, according to Der Spiegel. Two problems: 1) that would be illegal under EU data protection law; 2) the Parliament doesn’t accredit journalists, the Commission does. http://bit.ly/1PkR9Ft

DENMARK — MORE INFORMATION ON PROPOSED REFUGEE CURBS: Denmark’s ruling party wants you to know that while, yes, refugee assets would be seized under proposed new laws, “the same rules apply to Danes receiving cash benefits.” Regarding family reunification rules for asylum-seekers, “The three-year rule will only apply to refugees assigned temporary residence. Most Syrian refugees will be assigned asylum on the basis of the U.N. 1951 Refugee Convention, and they will be subject to the rules for family reunification that apply today — along with the remaining 80 percent of refugees with legal residence in Denmark — which means that they have the right to family reunification as soon as their case has been examined and that they have been granted status as refugees on the basis of the U.N. Convention.” More info on the proposals: http://bit.ly/1SzTkFz

COMPETITION — APPLE CEO MEETS VESTAGER: Tim Cook met the EU competition commissioner yesterday to press his case against Brussels concerns of avoiding tax. As a PR tactic Apple chose the old “but we created lots of jobs” line on social media to explain why regulators shouldn’t look too hard at its tax arrangements. Unfortunately for Apple, employment levels aren’t are a part of tax or competition law. And if all the job creation claimed by companies and the EU actually took place, the EU would make China look like it is at a standstill. http://bloom.bg/1nBVJTx

BRUSSELS — STUDENT COMPLAINT ABOUT POLICE BRUTALITY: A Facebook post that has been circulating since the weekend is now an official police complaint, with a British student alleging police brutality at the hands of the Saint-Gilles police over the course of two hours Saturday night. The alleged victim says he was beaten and tortured. Elliot Meredith’s lawyer Zouhaier Chihaoui said, “This is a disgusting incident. This is not just abuse, this is torture.” The Brussels prosecutor has launched an investigation of the incident, according to the BBC: http://bbc.in/1OKbzS; Daily Mail: http://dailym.ai/1RBFq5E

TOP EVENTS TODAY … European Central Bank president Mario Draghi; U.S. secretary of state John Kerry; “Europe at a tipping point” featuring Emmanuel Macron, David Miliband, Federica Mogherini and Witold Waszczykowski; Mexican President Enrique Peña Nieto.

WE HEAR: Some staff at the WEF would not be unhappy to take the Forum elsewhere, to get around complaining locals and a proliferation of competing events and spaces outside the official Forum. Remember when the exceptional New York-based WEF took place after the 9/11 attacks? The reason was partly solidarity, I hear, and partly a convenient way to remind Davosers to be grateful for having the forum there. Sounds like they might be in line for another reminder soon.

QUOTES OF THE DAY …

Cameron: “It’s a freedom of movement to work, not a freedom of movement to claim” (welfare benefits)

Netanyahu: “The EU policy merely reflect now the prevailing Arab policy … there is a great shift taking place,” and “I want to be remembered as the protector of Israel.”

EU AT DAVOS: A dozen commissioners met in a private session yesterday with a select group of Davos delegates. Those in the room have tended to describe the experience as pleasantly surprising and to the point. Playbook hears the commissioners were best at describing the problems Europe faces and the need to address them collectively. They were less concrete about how to implement change.

Commission Vice President Katainen is finding a warmer reception for his infrastructure investment plans. He is becoming the face of an EU committed to small steps; to shaping its operating environment rather than refashioning it with a sledgehammer.

Commissioner Moedas says the big difference at Davos between 2015 and 2016 is the number of participants taking digital issues seriously. He tells Playbook they are thinking more long-term, and the debates about how to be digital have moved from the nerdy corners to the core of discussion. Next up, the Commissioner is today launching 140 news grantees as part of a “Proof of Concept” program designed to be the bridge between market and fundamental research.

CHINA — VP SAYS ‘NEW NORMAL’ IS STEADY GROWTH: Steady rather than speedy, that’s the way forward, says Li Yuanchao, vice president of the People’s Republic of China. Hedge fund star Anthony Scaramucci also puts China’s growth in perspective, reminding that the country is achieving the same absolute growth as in the past, but the headline rate is lower because the economy is now so much bigger.

VOICES FROM DAVOS …

Anthony Scaramucci, the prominent head of Skybridge Capital, is not shy about sharing his views of the economy (China is growing as much as before, but the relative annual rate has declined as the economy has grown) and the U.S. presidential race (he is a key Jeb Bush backer). Here’s how he rates the Republicans …

On Chris Christie: “The Chris Christie campaign died in late October 2012” (when photographed with Obama)

Ted Cruz: “Cruz’s nomination died last week. A combination of the loans, Canada and ‘New York values.’ When you say ‘New York values,’ guys like us working in New York who lived through 9/11 who know firemen and their widows… He was a zombie on the stage called Ted Cruz and he blew his brain out … got no shot.”

On Trump: “The American Berlusconi.. is that what the American people want?”

On Jeb: “You can’t underestimate the adaptation Bush has made. When Bush wins this will be a Harvard Business School case study of entrepreneurial adaptation, the field troops up in New Hampshire.”

NOTABLE:

– Women may make up only 18 percent of participants at WEF, but they dominated a session on refugee integration with Austrian migration ministers Sebastien Kurz, making up two-thirds of the audience.

– Davos backlash stories from within seem to be a trend this year; criticism from badge-holders is growing.

BEST NATIONAL NIGHT: South Korea, for its high quality gifts and food. Indonesia continues to receive low scores for its gift bag. Rwanda this year made an opening splash.

BEST PARTY LAST NIGHT: Freud’s and Google’s. McKinsey rated poorly this year.

WHICH? Davos hotel offered to let an individual locked out of their apartment rent a room for €700 for two hours. Note to locked out guests: “you need to be out of the room by 7 am”

SPOTTED:

— Howard Lutnick, Jimmy Wales and Kate Garvey, headlining the Piano Bar audience participation in the early hours of this morning

— The Dutch delegation in a friendly posse in the Central lounge including Rutte, Dijsselbloem and Ploumen

— Big blocks of snow being dumped off the roof of the Davos Hilton in front of confused WEF participants

— Jack Ma of Alibaba in a huge puffa jacket

— Sheryl Sandberg, positively regal in deep purple

— Tony Blair raving about the versatility of his R.M. Williams boots from Australia, and reminding party guests that one of his former interns is now the prime minister of Malta.

MOVING: Phil Malloch of TeliaSonera is moving from Brussels to Stockholm, in the same public affairs role; Daniel Friedlaender will open Sky’s new office in Brussels.

JUST BORN: The Belgian prime minister, Charles Michel, 40, becomes a father for the second time, to baby girl Jeanne. http://politi.co/1P8T1iR

BIRTHDAYS: Sarah Ryan of Vodafone, Pierre Schellekens of the European Commission

THANKS to: Craig Winneker, Tara Palmeri, Florian Eder.

**A message from EPP Group: What should be the priorities of EU budgets and what is the future of social Europe? The EPP Group Bureau will address these questions next week in Bratislava, Slovakia, with Commission Vice-President Kristalina Georgieva and Commissioner Marianne Thyssen. When the EU’s long-term budget, the Multi-annual Financial Framework (MFF) 2014-2020, was approved, it was agreed to review it at the midterm, by the end 2016. The EPP Group is now preparing its position on the scope, content and objective of this exercise. Identification of priorities and demands will be crucial, taking into account the economic situation and challenges in the fields of migration and security. Social market economy is at the core of the EPP political family’s value-base, and now we want to define what a modern Social Europe should look like. Reforms for growth and jobs are at the heart of our action. Check out our reform agenda for Europe’s future.**